the proposal made by H.E. the President, in his capacity as the Minister of Finance and Planning, instruct the Legal Draftsman to draft legislation to impose restrictions on transfer of lands to Foreigners, was approved by the Cabinet. The salient features are -

(i) transfer of State or Private land by way of a sale, donation, gift or by any other disposition will be prohibited, to a person who is not a Citizen of Sri Lanka, or to a Company incorporated in Sri Lanka, where any foreign shareholding in such Company is 50% or above to a Foreign Company, unless exemption is granted in terms of the proposed Act;
(ii) State or Private lands could be leased out to persons referred to at (i) above, for a maximum period of 99 years, instead of outright sale, subject to stipulations.